FLOORING firm Carpetright has bemoaned European markets after reporting deeper losses.

The retailer recorded pre-tax losses of £7.2m for the year to April 26, compared to a £5.1m deficit 12 months earlier.

Bosses previously issued two profit warnings.

Its underlying pre-tax profits fell 52 per cent to £4.6m, with group revenues falling from £457m to £447m.

European revenue dropped more than five per cent to £71m.

The group, which owns Sunderland-based Storey Carpets, says markets remain challenging, blaming its woes in Europe on difficult trading in the Netherlands.

Founder Lord Harris of Peckham, who made a dramatic return to the helm after the shock departure of chief executive Darren Shapland, said it was still waiting to feel the effects of the UK’s strengthening economy.

He said: “While indicators point to an overall improvement in UK economic performance over the past 12 months, it has been a challenging time for the group with our markets remaining highly competitive and deal-driven.

“The performance of the business in the rest of Europe is principally a reflection of the continued difficult trading in the Netherlands.

“Against this backdrop, we continue to take steps to develop the business.

“While we anticipate trading conditions will remain challenging, we expect these actions will underpin an improvement in performance in the new financial year.”

The company says it refurbished 89 of its stores in the period, while cutting its number of outlets by six to 472.

It also plans to invest further in its Sleepright bed division, which accounts for 7.6 per cent of total UK sales revenue.

It added Lord Harris will remain as the company’s non-executive chairman and will continue in the role until a successor is found.

He may remain on the board in a non-executive capacity once a new chairman is appointed.